If there is one dish that turns every meal into a celebration, it is Paneer Butter Masala. Velvety tomato-based gravy, soft cubes of fresh paneer, and just the right warmth of spices – this classic North Indian recipe is loved across every kitchen in India and beyond. Whether you are a vegetarian looking for a show-stopper main course, or simply craving something indulgent after a long day, this Paneer Butter Masala recipe delivers restaurant-quality results right at home.
Details
4
20
30
What is Paneer Butter Masala?
Paneer Butter Masala, also known as Butter Paneer or Paneer Makhani, is a beloved North Indian dish made with soft paneer cubes simmered in a rich, buttery tomato and cream gravy. The dish originates from the same culinary tradition as the iconic Butter Chicken – both sharing a smooth, mildly spiced, and deeply aromatic sauce. What sets Paneer Butter Masala apart is its entirely vegetarian nature, making it the go-to choice for vegetarians who want a hearty, satisfying main course.
Why You Will Love This Recipe
Before we dive into the recipe, here is why this post is your ultimate guide to the perfect Paneer Butter Masala:
Ready in under 45 minutes with simple pantry ingredients
Completely vegetarian and can be made vegan with substitutions
Tastes just like your favourite Indian restaurant
Pairs beautifully with naan, roti, jeera rice, or plain basmati rice
Kid-friendly: mildly spiced but deeply flavourful
Ingredients for Paneer Butter Masala
Here is everything you need to make an authentic Paneer Butter Masala from scratch:
For the Paneer Marinade:
250 grams paneer, cut into 1-inch cubes
2 tablespoons fresh cream or yogurt
1/2 teaspoon red chilli powder
1/4 teaspoon turmeric powder
Salt to taste
For the Gravy:
2 tablespoons butter (salted or unsalted)
1 tablespoon oil
1 large onion, roughly chopped
3 large tomatoes, roughly chopped
10-12 cashews (for creaminess)
1 tablespoon ginger-garlic paste
1 teaspoon cumin seeds
1 teaspoon coriander powder
1 teaspoon garam masala
1/2 teaspoon Kashmiri red chilli powder (for colour and mild heat)
1 teaspoon kasuri methi (dried fenugreek leaves)
3-4 tablespoons fresh cream
1 tablespoon honey or sugar (optional, to balance acidity)
Salt to taste
Step-by-Step Instructions: How to Make Paneer Butter Masala
Step 1: Marinate the Paneer
In a bowl, toss the paneer cubes with fresh cream (or yogurt), red chilli powder, turmeric, and a pinch of salt. Mix gently and let the paneer rest for 15-20 minutes. While the paneer marinates, you can prepare the gravy base.
Step 2: Make the Tomato-Onion Base
Heat 1 tablespoon of butter and 1 tablespoon of oil in a pan over medium heat. Add cumin seeds and let them splutter. Add the chopped onions and cook until golden brown, about 8-10 minutes. Add the ginger-garlic paste and cook for 2 minutes until the raw smell disappears. Add the chopped tomatoes and cashews. Season with a little salt and cook covered on low heat for 10-12 minutes until the tomatoes are completely soft and mushy. Let the mixture cool slightly, then blend it into a smooth, velvety puree using a blender. Strain through a sieve for an extra-smooth restaurant-style gravy.
Step 3: Cook the Gravy
In the same pan, melt 1 tablespoon of butter over medium heat. Add the blended tomato-onion puree back into the pan. Add Kashmiri red chilli powder, coriander powder, and garam masala. Stir well and cook the masala on medium heat for 8-10 minutes, stirring regularly, until the oil begins to separate from the gravy and the colour deepens. This step is key to building deep, layered flavour.
Step 4: Lightly Pan-Fry the Paneer
In a separate small pan, heat a little butter or oil. Lightly sear the marinated paneer cubes for 1-2 minutes on each side until they are just golden on the outside but still soft inside. This step is optional but adds a wonderful texture contrast to the dish.
Step 5: Bring It All Together
Add the seared paneer cubes to the gravy. Pour in the fresh cream and stir gently. Add the honey or sugar if the gravy tastes too acidic. Crush the kasuri methi between your palms and add it to the pan – this is the secret to the authentic dhaba-style aroma! Adjust salt, cook for 3-4 more minutes on low heat, and your Paneer Butter Masala is ready.
Pro Tips for the Best Paneer Butter Masala
Use fresh paneer: Store-bought paneer works fine, but homemade paneer is softer and absorbs the marinade better. If using store-bought, soak it in warm salted water for 15 minutes before marinating to make it soft.
Do not skip the cashews: Cashews blended into the gravy give Paneer Butter Masala its characteristic creaminess without relying entirely on dairy. This is the trick most restaurants use.
Use Kashmiri red chilli for colour: Regular red chilli powder makes the gravy dark and very spicy. Kashmiri red chilli gives a gorgeous deep red-orange colour with mild heat – perfect for this dish.
Kasuri methi is non-negotiable: Crushed dried fenugreek leaves added at the very end is the defining aroma of authentic Paneer Butter Masala. Do not skip it.
Balance the acidity: Tomatoes vary in their tartness. If your gravy is too sour, a teaspoon of honey or sugar will balance it perfectly without compromising the flavour profile.
What to Serve with Paneer Butter Masala
Paneer Butter Masala pairs wonderfully with a variety of Indian breads and rice dishes. Here are the best accompaniments:
Butter Naan or Garlic Naan: The classic pairing. Tear off a piece of soft, pillowy naan and scoop up the creamy gravy – heaven.
Tandoori Roti or Phulka: A lighter, whole-wheat option that balances the richness of the dish.
Jeera Rice: Cumin-flavoured steamed rice is arguably the most popular pairing for any North Indian gravy.
Plain Basmati Rice: Simple and fragrant, it lets the bold flavours of the masala shine.
Lachha Paratha: Flaky, layered whole-wheat flatbread that adds a lovely textural contrast.
Variations to Try
Dhaba-Style Paneer Butter Masala: Use whole spices like cardamom, cinnamon, and bay leaves in the tempering for a more rustic, complex flavour.
Vegan Paneer Butter Masala: Replace paneer with firm tofu. Use coconut cream instead of fresh dairy cream, and replace butter with vegan butter or coconut oil.
Low-Calorie Version: Skip the cream and cashews. Use low-fat yogurt instead of cream to keep the dish light while retaining its silky texture.
Smoked Paneer Butter Masala: Place a small bowl in the finished gravy, put a hot piece of charcoal in the bowl, drizzle with a few drops of ghee, and immediately cover the pan for 2 minutes to infuse a gorgeous smoky flavour.
Frequently Asked Questions
Can I make Paneer Butter Masala ahead of time?
Yes! The gravy base (without paneer) can be made 2-3 days ahead and stored in the refrigerator. Add the paneer just before serving and heat gently. This actually makes the flavours even better as the spices develop overnight.
How do I store leftover Paneer Butter Masala?
Store in an airtight container in the fridge for up to 3 days. Reheat gently on low heat, adding a splash of water or cream if the gravy has thickened. Avoid microwaving on high as it can make the paneer rubbery.
Can I freeze Paneer Butter Masala?
Freeze only the gravy (without paneer) for up to 1 month. Fresh or thawed paneer should be added at the time of serving for the best texture. The cream-based gravy can sometimes separate slightly upon thawing – simply whisk it back together while reheating.
What is the difference between Paneer Butter Masala and Paneer Tikka Masala?
Paneer Butter Masala features soft, uncharred paneer in a mild, buttery tomato-cream gravy. Paneer Tikka Masala uses paneer that has been grilled or roasted (tikka) in a tandoor or oven first, giving the dish a smokier, more robust flavour. The gravy in Tikka Masala also tends to be spicier and more intensely flavoured.
Final Thoughts
Paneer Butter Masala is one of those timeless recipes that never goes out of style. With its gorgeous colour, silky texture, and deeply satisfying flavour, it is the dish that makes any dinner feel special. Once you make this at home, you will never want to order it from a restaurant again.
Give this recipe a try and share your experience in the comments below. If you loved this Paneer Butter Masala, you might also enjoy our Butter Chicken recipe, Hariyali Chicken Tikka Masala, or our Mushroom Masala for another flavourful vegetarian option. Happy cooking!
Prep Time: 20 minutes | Cook Time: 30 minutes | Total Time: 50 minutes | Servings: 4 | Cuisine: North Indian | Course: Main Course | Diet: Vegetarian
